Ethereum to test $300 level as the short-term market structure was flashing some signs of weakness as we can see in our ethereum latest news.
The crypto has mainly been consolidating and lacked directionality with major uncertainty in the crypto market. This trend will continue to bring fear for the investors causing assets like ETH to see more downsides in the upcoming days and weeks. One trader is watching for Ethereum to test $300 noting that its short-term outlook is shaky while the market structure is strong. He noted that the decline will not cut deeper than $300 due to the abundance of technical support.
Bitcoin’s consolidation phase did almost nothing to provide other cryptocurrencies like Ethereum with the clear directionality causing the entire market to drop into a prolonged period of consolidating. This proves to be a huge impact for altcoins in the Defi sector which are mainly considered to be high beta assets that carry increased risk and volatility over the bigger counterparts. Ethereum was tracking Bitcoin’s move and had been struggling to gain any independent momentum. One trader is noting that this could even lead to a downtrend of $300 before it finds significant support.
At the time of writing, Ethereum was trading up under 1% with a current price of $350. This is around the same price level that it was trading over the past few days. Bitcoin has been stuck between $10,500 and $10,600 while struggling to provide the entire market with a trend. ETH is now trading well above its recent lows of $315 which was set during the strong selloff.
One analyst believes that ETH could be in for further-short term weakness despite the signs of strength on the macro chart. He noted that it is possible that ETH tests $300 in the near-term before hitting some huge technical support:
“ETH / USD: Personally with so much uncertainty in the market it is very possible we see a $300 region retest, that said honestly HTF structure is looking great, lots of EMA support below us… In 2018/2019 the 55 EMA was consistently resistance, price now trending well above!”
Unless BTC rallies higher and creates issues for Ethereum, the mounting uncertainty among investors could plague the ETH near-term outlook.